Question

Please calculate the after-tax return on the following securities for a company that is in the...

Please calculate the after-tax return on the following securities for a company that is in the 30% federal tax bracket. Assume the tax rate on dividends is 15%.

A. Treasury bonds at 5%

B. Corporate bonds at 8.25%

C. Municipal bonds at 7%

D. Preferred stock at 6.5%

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